Procter & Gamble (P&G) Analysis: Strategy and Recommendations

This management capstone report provides a comprehensive analysis of Procter & Gamble (P&G), examining its vision, mission, and objectives. It delves into the company's resources and capabilities through a Resource-Based View (RBV) analysis, followed by a VRIO analysis to assess its competitive advantages. The report also conducts a value chain analysis, evaluating primary and secondary activities, and a SWOT assessment to identify strengths, weaknesses, opportunities, and threats. Furthermore, the report offers strategic recommendations based on these analyses, concluding with an overview of P&G's market position and future prospects. The analysis covers key aspects such as inbound and outbound logistics, marketing and sales, and technological developments within the organization. The report underscores the importance of understanding P&G's financial resources, human resources, and brand value, as well as its ability to adapt to market changes and maintain a competitive edge. The recommendations aim to enhance P&G's strategies for sustained growth and market leadership.

Running head: MANAGEMENT CAPSTONE
MANAGEMENT CAPSTONE
Name of the student
Name of the university
Author note

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Table of Contents
1. Introduction to the organization, P&G........................................................................................2
2. Discussion on the Vision, mission objectives of the business.....................................................2
2.1 Vision of the organization......................................................................................................2
2.2 Mission of the organization...................................................................................................2
2.3 Objectives of the organization...............................................................................................3
3. RBV of the organization..............................................................................................................3
4. VRIO analysis of P&G................................................................................................................4
5. Value chain analysis of the organization.....................................................................................6
5.1 Primary Activities..................................................................................................................6
Inbound Logistics....................................................................................................................6
Operations................................................................................................................................7
Outbound Logistics..................................................................................................................7
Marketing and Sales.................................................................................................................8
Services....................................................................................................................................8
5.2 Secondary Activities..............................................................................................................8
Firm infrastructure...................................................................................................................8
Human resource management..................................................................................................9
Technology development.........................................................................................................9
Procurement.............................................................................................................................9
6. SWOT assessment of the organization......................................................................................10
7. Recommendations......................................................................................................................10
8. Conclusion.................................................................................................................................11
References......................................................................................................................................12

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1. Introduction to the organization, P&G
The concerned organization, Procter & Gamble Company (P&G), is an American
multinational organization which was founded in the year 1837 and is headquartered in Ohio
(Us.pg.com., 2020). The organization operates as a consumer goods corporation which has
established a steady market share in the different markets through proposition of wider range
healthcare and hygiene products. The revenue of the concerned organization is recorded to be
US$ 67.684 billion and the net income of the venture was US$3.897 billion in the year 2019
(Us.pg.com., 2020). The research will take the initiative of identifying the resource and
capabilities of the organization while drawing on the strengths and weaknesses of the same for
evaluating the market growth opportunities and strategies relating to the sustenance of the
venture.
2. Discussion on the Vision, mission objectives of the business
2.1 Vision of the organization
The vision of the organization is to get recognized as the best consumer products and
service providing organization in the world. The long term vision of the organization is reliant
on fulfilling the needs of sustenance in the current and the future markets while proposing
improved propositions at best possible values.
2.2 Mission of the organization
The mission of the organization is to provide the customers with branded products and
services that are of superior quality with the purpose of improving the lifestyle of the end users
for the current and the future generations. Therefore, the specific mission of the organization is

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to win over the trust and confidence of the customers while improving the effectiveness of the
business operations and gaining a competitive edge over the existing market players.
2.3 Objectives of the organization
The major objectives of the organization are:
 To provide the customers with branded propositions consisting of superior quality and
enormous value of the offerings
 To bring forth improvements in the lives of all the consumers
 To increase the value of sales leadership sales, annual margins and commitment of the
customers
 To act towards achieving the prosperity of the people, shareholders and different
communities
3. RBV of the organization
Tangible resources of the organization
 Plant and machinery
 Financial resources
 R&D operations
 Human resources
Intangible resources of the organization
 Brand value
 Business model
 Cost structure
 Distribution and networking

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4. VRIO analysis of P&G
Resources Valuable Rare Inimitable Organized Competitive
edge
Brand value Yes Yes Yes Yes Strong
competitive
advantage
Business
model
Yes No No Yes Sustainable
value
Financial
resources
Yes Yes Yes Yes Strong
competitive
advantage
Human
resources
Yes Yes No Yes Competitive
advantage
Plant and
machinery
Yes Yes No Yes Competitive
advantage
Distribution
and
networking
Yes Yes No Yes Competitive
advantage
Cost
structure
No No No No Lack of
competitive
edge

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R&D
operations
No No Yes Yes Sustainable
value
The VRIO assessment of the organization identified the valuable, rare, inimitable and the
organized resources of the business with the purpose of improving the rate of operations (Cho &
Linderman, 2020). The resources of the organization, specifically the conjugation of the
tangible and the intangible resources, have significantly empowered the growth of the
organization while operating as per the common goals of the venture. From the VRIO
assessment it might be noted that the organization holds a strong competitive edge in relation to
the brand value. However, the business model that is being followed in the organization is
neither rare nor inimitable which provides the venture with sustainable value for maintaining its
operations in the long run. The lack of uniqueness in the business model might affect the
capability of the business in empowering unique value propositions in the market. However, the
concerned organization have a strong financial resource related background through effective
relation with the investors and enormous funding for supporting their projects (Krishnaswamy,
2017). The financial resources did not only add value to the continuous development related
motif of the organization but also improved the operational criteria while competing with the
other existing players in the international markets.
The trained human resource of the organization added value to the operations of the
venture while imposing continuous innovation and modification in the process design thereby
acting as a valuable, rare and organized resource for the venture. However, the imitability of the
trained human resource of the organizations is reflective on the increased supply of workforce in
the markets (Khan, 2017). Moreover, it has been fund that the organization gathered a

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competitive benefit from the distribution and networking based resources. The extensive range
of networks enabled the business in gaining a competitive edge over the existing market players
while increasing the scope of making the propositions available in the markets. However, in this
case also the imitability of the networking and distribution channels are due to the absence of
uniqueness in the process designs.
The cost structure of the organization increased with the elevating cost of operations
which surpassed the yearly earnings. The increased cost of operations of the venture greatly
affected the capability of the business organization in retaining the competitive edge of the same
while operating in intensely competitive markets (Rehman, Mohamed & Ayoup, 2019). Lastly,
the R&D operations of the organization provides the venture with a sustainable value as they are
inimitable and well organized. However, the increased R&D efforts of the organization has
resulted to an increase in the cost structure of the venture which might curb the same of the
profit margins. Therefore, the categorization of the different resources and the manner in which
the same has contributed to the competitive advantage of the same was analyzed through the use
of the VRIO tool.
5. Value chain analysis of the organization
5.1 Primary Activities
Inbound Logistics
The concerned organization holds effective relation with the suppliers which enabled the
venture in maintaining the continuity of the operation while addressing the market demand. The
increased focus of the organization to hold communication with the suppliers has enabled the
business in improving the inbound logistics related concerns of the same while operating in the

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different international markets (Mishra et al., 2018). The continuous flow of supplies in the
organization and effective inventory management related operations permitted the business in
gaining a competitive edge while meeting the market demand against the existing players.
Operations
The consistent performance of the business is reliant on the effectiveness of the business
operation while operating as per the common goals of the venture. The operations that are
planned by the organization aims at maintaining continuity of the processes while adhering to
the changing demand of the customers (Pee & Kankanhalli, 2016). The operational planning
regarding measures in an organization are specifically designed with the purpose of adhering to
the changing needs of the customers. In this connection, the concerned organization takes the
initiative of conducting market surveys for identifying the demand faced by the same and the
manner in which the process designs might be articulated. Effective planning related operations
of the business ensure the effective growth and expansion of the venture in the markets.
Outbound Logistics
The organization operates through the facilitation of Omni-channel distribution which
has widened the scope for positioning the propositions in the market. The organization holds
collaboration with different supermarket chains and stores with the objective of facilitating the
physical availability of the propositions in the markets and allowing the customers to make a
convenient buy of the offerings (Srećković, 2018). On the other hand, the organization also made
the products available in different online media platforms and ecommerce which enabled the
venture in widening the scope of its target market in international economies. Effective
networking and logistic operations of the business enabled the same in ensuring the larger
availability of its products and services in the different markets.

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Marketing and Sales
The concerned organization aimed at providing the customers with differentiated
offerings while carefully planning on the pricing considerations and the design or value
proposition of the offering for every target segment. The careful planning and marketing
activities of the organization through increased promotions and online presence permitted the
business in empowering the sales volume (de Sousa Jabbour et al., 2019). Effective planning and
segment of the target market while positioning their propositions are an important consideration
that is made by the organization which contributed to their competitive edge over the existing
market players in the economy.
Services
The organization developed a team of customer support executives who would not only
assist the customers in making purchase decisions but also provide after sale services. The
development of the customer assistance teams has empowered the commitment of the customers
towards the venture. The key aspects of change in the organizational operations are based on the
effective functioning of the different systems in accordance with the common goals of the
venture.
5.2 Secondary Activities
Firm infrastructure
The firm infrastructure involves an array of resources like the plant and machinery,
quality management initiatives, strategic management capabilities and financial planning
potency of an organization. The concerned organization takes the initiative of developing the
overall infrastructural resources on the basis of the changing demand based needs of the
customers while operating in the different markets. The major modifications in the

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organizational operations are reliant on the various changes in the organizational operations and
the manner in which the same might reflect the competitive benefit of the venture.
Human resource management
The concerned venture has developed an effective HR management strategy for
recruitment of skilled workforce. On the other hand, the organization developed a series of
training and development initiatives for the existing staff members with the purpose of
improving their operations while adhering to the common needs of the organization (Dubey et
al., 2019). The organization holds an array of talents which specifically contributed towards the
achievement of common goals of the venture. Moreover, the skilled and experienced workforce
of the organization contributed towards the continuous innovation related concerns of the
venture which assisted the same in gaining a sustainable edge.
Technology development
The organization developed different technological reforms through the implementation
of semi-automated and automated mechanisms for improving the productivity along with
increasing the quality of the propositions. The organization took the initiative of improving the
rate of operations of the venture through induction of different technological reforms which
specifically provided the venture with a competitive edge while increasing the value of the
propositions among the target audience.
Procurement
The organization makes a purchase of the important inputs from the trusted vendors and
suppliers which has specifically enabled the same in improving the process flow. The improved
quality of the inputs enabled the business in providing the customers with sustainable value of
the propositions while operating as per the common goals of the venture.

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6. SWOT assessment of the organization
Strengths
 Increased variety of propositions
 Brand image
 Non-cyclical propositions
 Making investment of around $2
billion on the R&D operations
 Improved marketing and promotional
initiatives
 Effective distribution channels
Weaknesses
 Intensified competition in the markets
 Fake products being sold in the name
of the organization
 Increasing operational costs
 Beauty products mostly targeted
towards the female segments
Opportunities
 Introducing beauty products for the
male segments
 Making expansion in the developing
economies
 Taking an initiative of facilitating
green process structures
Threats
 Availability of substitutes in the
market at cheaper price
 Reduction of consumer spending
through recession and lower
disposable income
 Increased cost of raw materials
7. Recommendations
The recommended activities that might be considered by the concerned organization are:
 Minimizing operational costs through Lean principles: The application of the lean
principles in the operational processes of the organization would allow the same in

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minimizing the wastes in the production units. The minimization of the wastes would
allow the organization in downsizing the costs that are being incurred by the same while
elevating the output of the operational process.
 Introduction of new propositions for the male segments: The introduction of new
propositions for the male segments would allow the organization in improving the
effectiveness of the business operations while widening the marketing scope and
targeting wider range of customers. The widened market scope of the organization would
allow the same in increasing the sales volume.
 Making expansion in the developing economies: Expansion in the developing
economies would allow the organization in minimizing the threats of intensified
competition in saturated markets. On the other hand, the increasing rate of disposable
income among the population in the developing economies would provide the
organization with wider scope of target audience in the new markets.
8. Conclusion
Therefore, from the above analysis it might be stated that the concerned organization is
capable of improving its market position through the implementation of different business
processes with the assistance of its increased resources and capabilities. However, it has been
noticed that the organization is facing significant issues due to the increasing cost of operations
while dominated over their annual earnings. Therefore, the report enumerated a list of
recommendations based on the assessment of the resource based view of the venture which
would empower the growth and sustenance of the business in intensely competitive markets.

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References
Cho, Y. S., & Linderman, K. (2020). Resource-Based Product and Process Innovation Model:
Theory Development and Empirical Validation. Sustainability, 12(3), 913.
de Sousa Jabbour, A. B. L., Vazquez-Brust, D. A., Ribeiro, D. A., & Jabbour, C. J. C. (2019).
The interplay between stakeholders, resources and capabilities in climate change strategy:
converting barriers into cooperation. Business Strategy and the Environment.
Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., & Papadopoulos, T. (2019). Big data and
predictive analytics and manufacturing performance: integrating institutional theory,
resource‐based view and big data culture. British Journal of Management, 30(2), 341-
361.
Khan, A. N. A. S. (2017). Impact of accounting information system on the organizational
performance: a case study of Procter and Gamble. Star Research: An International
Online Journal, 5(12), 26-32.
Krishnaswamy, S. (2017). Sources of Sustainable competitive Advantage: A Study & Industry
Outlook. St. Theresa Journal of Humanities and Social Sciences, 3(1).
Mishra, D., Luo, Z., Hazen, B., Hassini, E., & Foropon, C. (2018). Organizational capabilities
that enable big data and predictive analytics diffusion and organizational
performance. Management Decision.
Pee, L. G., & Kankanhalli, A. (2016). Interactions among factors influencing knowledge
management in public-sector organizations: A resource-based view. Government
Information Quarterly, 33(1), 188-199.

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Rehman, S. U., Mohamed, R., & Ayoup, H. (2019). The mediating role of organizational
capabilities between organizational performance and its determinants. Journal of Global
Entrepreneurship Research, 9(1), 30.
Srećković, M. (2018). The performance effect of network and managerial capabilities of
entrepreneurial firms. Small Business Economics, 50(4), 807-824.
Us.pg.com. (2020). Procter & Gamble Company. Retrieved 2 March 2020, from
https://us.pg.com/